“The Corporate Transparency Act: Preparing to Comply with New Federal Reporting”

07.01.2024

In an article published by Virginia Lawyers Weekly on June 23, 2024, Rod Simmons discussed the new federal reporting requirements on companies in the U.S. imposed by the Corporate Transparency Act (CTA).

The CTA has created a new reporting system in which companies will now be required to report to the U.S. government information about the individuals who ultimately own and control those companies. These reports — called “Beneficial Owner Information Reports” or BOIRs — will need to be filed online with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).

“Although existing companies will have until Jan. 1, 2025, to submit an initial BOIR, all companies should begin taking steps to determine whether they constitute a ‘reporting company’ under the CTA or whether they may qualify for one of the exemptions,” said Simmons. “If a company is not exempt, the company should also begin identifying those individuals who will be the ‘beneficial owners’ of the company, whose personal information (i.e., name, DOB, address, photo ID) will need to be provided in the company’s BOIR.”

Subscribers may read the full article here.